Around 31 million people use cryptocurrency in Europe, according to data from cryptocurrency payment gateway TripleA, cited by Euronews.
This article looks at the number of holders and users worldwide, which continents and countries have the most users, and mainly the profitability of Bitcoin. It has exceeded that of real estate in London, a top destination on the property market, and gold by an exponential rate in the past decade. So, what should you invest in - Bitcoin, real estate, or gold? The answer begs itself!
Asia leads the way
Asia has the highest number of crypto users - 263 million, followed by 57 million in North America and 38 million in Africa. Europe comes in fourth with 31 million. The number of holders within the continents varies widely by country.
According to Chainalysis's 2023 Global Crypto Adoption Index, the biggest fans of crypto are in Eastern Europe. The index shows the concentration of users and the amounts invested in crypto on a scale from 0 to 1. Most holders and users are in Ukraine (0.215), followed by not entirely European countries - Turkey (0.142) and Russia (0.140).
The majority of these countries' territories are in Asia, in line with the biggest continent leading the way in crypto adoption. The UK comes in next with 0.121, followed by Spain (0.062).
Which are the top 5 adopters in the world?
Grassroots crypto adoption across the globe is led by India, which ranks on the extreme of the scale with a score of 1. Nigeria follows it with 0.642 and Vietnam with 0.568. The US is fourth with 0.367, and Ukraine rounds out the top five with 0.215. Ukraine is the only country in Europe to make the top five and 10 in the world.
Crypto adoption is highest in South and Central Asia, according to Chainalysis. Six of the countries in the top 10 are located there.
Crypto investments are rising
The overall crypto market cap gained 5% in the 24 hours surrounding Bitcoin's new all-time high. According to CoinGecko, it's currently $2.62 trillion. This is more than the GDP of Germany, the third-largest economy worldwide.
As crypto gains mainstream popularity, it's slowly entering the traditional financial system. The total number of blockchain platforms in Liechtenstein, Switzerland, and northern Italy exceeds 1,100. They were worth a combined $185 billion at the end of 2022.
Crypto is quite popular in lower-middle-income countries as well. In this group, El Salvador led the adoption, becoming the first country in the world to make Bitcoin legal tender.
Comparison to the real estate market
London's real estate market has provided a highly lucrative investment opportunity in the past decade. Although its yield has been more than 44%, that's nowhere near Bitcoin's gains of almost 5,000% in the same time frame. British real estate agency Foxtons compared the performance of the UK capital's real estate property market to a few other popular investment options, including the local stock market and Bitcoin.
Only Bitcoin and gold have delivered higher returns on investment over the past ten years. Bitcoin's gains in the past decade have been 4,963%. It was trading for around $840 in December 2013. In December last year, it was changing hands for $42,544.
Gold and Bitcoin hit a record high at the same time
Meanwhile, the safe haven investment, gold, came in second with a 66.8% return on investment in the same period. Bitcoin and gold hit new all-time highs on the same day – March 5. Gold broke its previous record of around $2,000 in December last year, peaking at $2,130 at around 1:30 pm UTC on Tuesday.
Silver recorded more moderate gains, at 22.9%. The return on investments in the FSTE 100 index was 15.7%. This index tracks the share prices of the 100 largest firms on the LSE. The worst investments were oil and gas. WTI crude, Brent crude, and natural gas slumped by -26.3%, -30.2%, and -41.5%, respectively.
Is real estate in London overpriced?
In December 2013, a London property cost £352,028 ($447,325) on average. Today, the average price is £508,037 ($645,567), an increase of almost $200,000, Euronews wrote. When the issue of investing in UK real estate arises, the London market is undoubtedly the pinnacle. Despite a tough 2023, experts maintain that the value of a London property has increased considerably over the last ten years.
Foxtons finds that the London real estate market "has turned a corner in 2024" and anticipates it will attract many significant investments.
Contributors
